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1. The XYZ Dental Supply Co. considers the Probability distribution for the returns on Stock A and Stock B are provided below State Probability Stock

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1. The XYZ Dental Supply Co. considers the Probability distribution for the returns on Stock A and Stock B are provided below State Probability Stock A Stock B 1 .30 32% 42% 2 48% 36% 3 .30 06% 02% 4 .15 12% 15% Calculate the expected return, standard deviation, covariance and co relation coefficient of the Stock A and Stock B. .25 2) Find the Expected return and Standard Deviation on a portfolio formed from stocks A and B given that the Expected Return on Stock A is 12.5%, the Expected Return on Stock B is 12.5%, the Standard Deviation on Stock A is 15%, the Standard Deviation on Stock B is 22%, the Correlation Coefficient between the returns on stocks A and B is -0.92, and the weight of Stock A is 70%

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